Answer:
A. It is included as part of government purchases (G)
B. it is included as part of consumption
C. It is included as part of investment
D. Amys father's transaction is not included as part of GDP
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable good and services + Investment spending by businesses + Government Spending + Net Export
The project in A is being undertaken by The Federal Aviation Administration. So, it qualities as government spending.
Amy gets a new video camera made in the United States is an instance of consumer spending
Van's employer upgrades all of its computer systems using U.S.-made parts is undertaken by a business so it is included in GDP as part of investment spending.
The transaction by Amy's father takes place outside the US, thus, it is not included in the calculation of US 's GDP.
I hope my answer helps you
Answer:
Standard direct material cost= $306,000
Explanation:
Giving the following information:
Cullumber Products plans to produce 10,200 units in January. Each unit requires 6 pounds of plastic, which costs $5 per pound.
<u>First, we need to calculate the standard pounds needed:</u>
Standard pounds of plastic= 10,200*6= 61,200 pounds
<u>Now, the standard cost:</u>
Standard direct material cost= 61,200*5
Standard direct material cost= $306,000
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Answer:
credit to Work in Process of $59,000.
Explanation:
Based on the information given the appropriate l journal entries to record these transactions would include a: CREDIT TO WORK IN PROCESS OF $59,000
Dr Finished goods $59,000
Cr Work in process $59,000
Dr Cost of goods sold $65,000
Cr Finished goods $65,000
Answer:
The amount of revenue to be recognized at 31st March is $383500
Explanation:
The revenue amount that should be recognized in the income statement as at March 31,2020 is the sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.
Hence, the amount of revenue as at 31st March is calculated thus:
Sales price $365000
Installation fee for 3 months(3/6*$37000) <u>$18500</u>
Total revenue as at 31st March $ 383,500
The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months
